Canadian Producers Benefit From Falling Loonie

Feb 05, 2015
CWB's director of market research says the downward plunge in the Canadian dollar is having many positive effects on Canadian agriculture.
 
Neil Townsend notes the falling loonie is helping to offset the struggling futures market.
 
He says the majority of what is grown in Canada is affected by the exchange rate.
 
"That's having a good impact on Canadian things that are trying to sell themselves in American dollars," he said. "Typically speaking about 80 per cent of what we grow in western Canada will be marketed eventually in US dollars, either sold into the US directly or offshore in Vancouver or the east coast."
 
Townsend cautions that the sinking dollar is not always a good thing, as it can hurt when it comes to the purchase of inputs or farm machinery.